In August, it was the world's largest hedge fund. Tuesday, it was the fourth-largest cable company in the United States.

Charter Communications Inc. became the ninth company to benefit from Gov. Dannel P. Malloy's economic development program, known as the "First Five" and, more recently, the "Next Five." Charter also became the second consecutive Next Five beneficiary to announce plans to settle in Stamford.

Charter — the video, Internet and telephone service company — will invest more than $10 million to relocate its corporate headquarters from St. Louis to a 70,000-square-foot space it will renovate in an existing building at 400 Atlantic St. in Stamford, Malloy announced during a news conference Tuesday afternoon.

Under its agreement with the state, Charter will create 200 jobs in Connecticut. In exchange, the state, Charter will create 200 jobs in Connecticut. In exchange, the state Department of Economic and Community Development will provide the company with a 10-year loan of up to $6.5 million at 2 percent interest, with principal payments deferred for three years.

Charter has committed to spending a minimum of $6.5 million to be eligible for the loan, and will use the money in part to improve and modernize its new headquarters and to purchase furnishings and office equipment. A portion of the state loan may be forgiven if certain job milestones are met, state officials said.

Neither state officials nor Charter, however, could answer a question about whether Charter's promised investment of "more than $10 million" represents money entirely from the company, or whether that amount reflects Charter's minimum investment of $6.5 million combined with the state's maximum loan of $6.5 million, for a total of $13 million.

Malloy touted the deal as another that will bring "good-paying jobs with good benefits" to the state, adding that the agreement will also "strengthen our position in key industry sectors in the process. Charter's decision to make Stamford its headquarters serves both of these objectives."

Anita Lamont, a spokeswoman for Charter in St. Louis, said the 200 jobs the company pledges to create include the fewer than 100 executives and support staff that are expected to relocate from St. Louis.

Charter employs 16,700 people nationwide, including 2,800 in two locations in St. Louis, Lamont said. It also operates a research and development facility in Denver, she said.

Jim Watson, spokesman for the DECD, said the workers who relocate here will be counted, because they are "new jobs to Connecticut."

As part of the deal, Charter also agreed to retain its 260 franchise-related jobs that already exist in the state.

According to the state Public Utility Regulatory Authority, Charter operates two cable franchises in Connecticut. Charter Communications of Western Connecticut serves all or part of 22 communities, including Bethlehem, Harwinton, Kent, New Milford, Newtown, Roxbury, Southbury, Trumbull, Woodbury and Winsted. Charter Communications of Northeastern Connecticut serves 16 communities, including Mansfield and Windham.

Nationwide, Charter serves more than 5 million residential and business customers in 25 states. In the second quarter of this year, the company reported a loss of $83 million, but that an improvement from its $107 million loss in the same quarter of 2011.

Tom Rutledge, Charter president and CEO, said in a news release that relocating the headquarters to Stamford positions his company for long-term growth.

"In addition to our cable operations in Connecticut, access to the talent base, the transportation infrastructure, and the proximity to other media headquarters and financial markets made Stamford a logical alternative," Rutledge said. "The state of Connecticut and Gov. Malloy's commitment and package of incentives offered made it compelling for us to decide on Stamford."

Charter is not alone in making that choice. Last month, Westport-based Bridgewater Associates — the world's largest hedge fund, with assets of nearly $130 billion — was announced as the eighth firm to benefit from the Next Five program, with plans to relocate to a building it will construct along Stamford's waterfront. And in October 2011, NBC Sports agreed to relocate from Rockefeller Center in New York City.

Also, in a deal that is not part of the First or Next Five programs, the state in August last year offered $20 million in incentives over five years to UBS, the Swiss banking giant, to retain 2,000 of its 3,500 jobs in Stamford.

Asked whether these four deals might be viewed as political patronage for the city Malloy led for 14 years as mayor, the governor's spokesman rejected that assertion, saying the three companies relocating to Stamford all preferred the city's proximity to New York City.

Spokesman Andrew Doba also said the First Five and Next Five programs have been fairly evenly distributed across the state.

"Cigna, CareCentrix, ESPN, and Deloitte all have a presence in Greater Hartford, while Alexion and Sustainable Building Systems are in Greater New Haven," he said, citing the other six companies that have benefited from the Malloy's program. "I think what you're seeing here is a governor committed to economic development all over the state."

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memosa123 wrote on Oct 3, 2012 6:20 AM:

" Sure he is committed to economic development all over the State except for Waterbury! Just ask the Hospital Merger people and Post University!!! "

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